| COMPANY |
Five Below, Inc. |
| COURT |
United States District Court for the Eastern District of Pennsylvania |
| CASE NUMBER |
24-cv-03638 |
| JUDGE |
The Hon. Gerald Austin McHugh Jr. |
| CLASS PERIOD |
March 20, 2024 through July 16, 2024 |
| SECURITY TYPE |
Common Stock |
LEAD PLAINTIFF DEADLINE IS SEPTEMBER 30, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
The Class Period begins on March 20, 2024, when Defendants issued a press release announcing results for the fiscal year 2023 and guidance for full year 2024 stating “Net sales are expected to be in the range of $3.97 billion to $4.07 billion based on opening between 225 and 235 new stores and assumingan approximate flat to 3% increase in comparable sales; Net income is expected to be in the range of $318 million to $346 million.” On an earnings call the same day, Defendant Anderson acknowledged a slower start to the year (due to slower start of tax refunds and shrink headwinds) but highlighted Five Below’s accelerating store traffic, merchandising opportunities and store expansions to help drive long-term growth for 2024.
On June 5, 2024, Five Below first shocked the market when it announced disappointing first quarter 2024 sales results and cut its full year 2024 guidance stating, “[n]et sales are expected to be in the range of $3.79 billion to $3.87 billion based on opening approximately 230 new stores and assumes an approximate 3% to 5% decrease in comparable sales. Net income is expected to be in the range of $275 million to $297 million.” On this news, the price of Five Below stock fell nearly 11%, to close at $118.72 per share on June 6, 2024.
Then, on July 16, 2024, Five Below announced that “Joel Anderson has stepped down from his roles of President and CEO, and from the Board of Directors, to pursue other interests,” and that “[c]omparable sales decreased 5.0% versus the restated and comparable period ended July 15, 2023.” As a result, Five Below revealed that the company “now expects sales for the fiscal second quarter ending August 3, 2024 to be in the range of $820 million to $826 million and assumes an approximate 6% to 7% decrease in comparable sales.” On this news, the price of Five Below stock fell more than 25%, to close at $76.50 per share on July 17, 2024.
The complaint alleges that, throughout the Class Period, Defendants made false and/or materially misleading information regarding Five Below’s financial strength and operations, including its outlook for the first quarter and full year 2024.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.